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Spa - Spanjaard Limited - Condensed Group Audited Results For The Year Ended 28

Release Date: 05/05/2009 07:05:02      Code(s): SPA
SPA - Spanjaard Limited - Condensed group audited results for the year ended 28 
February 2009                                                                   
Spanjaard Limited                                                               
(Incorporated in the Republic of South Africa)                                  
Registration number: 1960/004393/06                                             
Share code: SPA                                                                 
ISIN: ZAE000006938                                                              
SPANJAARD LIMITED > ANOTHER RECORD YEAR                                         
CONDENSED GROUP AUDITED RESULTS                                                 
FOR THE YEAR ENDED 28 FEBRUARY 2009                                             
CONDENSED CONSOLIDATED INCOME STATEMENT                                         
Year ended     Year ended                   
                                    28 February    29 February                  
                                    2009           2008                         
                                    R`000          R`000                        
Revenue                              98 278         85 415                      
Turnover                             97 216         84 457                      
Cost of sales                        61 159         53 208                      
Gross profit                         36 057         31 249                      
Operating expenses                   26 144         24 982                      
Depreciation and amortisation        1 797          1 536                       
Profit from operations               8 116          4 731                       
Net finance income                   447            273                         
Profit before tax                    8 563          5 004                       
Income tax expense                   (3 095)        (1 656)                     
Net profit                           5 468          3 348                       
Earnings per ordinary share                                                     
- basic and diluted (cents)        67,1           45,2                         
Dividend declared per ordinary share                                            
(cents)                                                                         
 - interim                          15,0           5,0                          
- final                            70,0           10,0                         
CONDENSED CONSOLIDATED BALANCE SHEET                                            
                                    28 February    29 February                  
                                    2009           2008                         
R`000          R`000                        
Assets                                                                          
Non-current assets                   19 049         18 239                      
 Property, plant and equipment      18 607         18 052                       
Goodwill                           437            -                            
 Deferred tax asset                 -              187                          
 Intangibles                        5              -                            
Current assets                       45 098         34 614                      
Total assets                         64 147         52 853                      
Equity and liabilities                                                          
Shareholders` equity                 31 842         33 294                      
 Ordinary shares and premium        6 871          6 871                        
Reserves                           24 971         26 423                       
 Retained earnings                  15 561         16 301                       
 Foreign currency translation       101             100                         
reserve                                                                         
Revaluation reserve                9 309          10 022                       
Non-current liabilities              5 176          4 760                       
 Borrowings                         1 968          950                          
 Deferred tax liabilities           3 208          3 810                        
Current liabilities                  27 129         14 799                      
 Interest bearing                   402            277                          
 Non-interest bearing               26 727         14 522                       
Total equity and liabilities         64 147         52 853                      
Number of ordinary shares in issue   8 143          8 143                       
(`000)                                                                          
Net asset value per share (cents)    391,7          408,9                       
CONDENSED CONSOLIDATED CASH FLOW STATEMENT                                      
Year ended     Year ended                   
                                    28 February    29 February                  
                                    2009           2008                         
                                    R`000          R`000                        
Cash flows from operating activities 157            7 037                       
Cash flows from investing activities (2 449)        (1 289)                     
Cash flows from financing activities 1 451          4 963                       
Net (decrease)/increase in cash and  (841)          10 711                      
cash equivalents                                                                
Cash and cash equivalents at         12 411         1 700                       
beginning of year                                                               
Cash and cash equivalents at end of  11 570         12 411                      
year                                                                            
CONDENSED SEGMENTAL PROFITS FROM OPERATIONS                                     
                                    Year ended     Year ended                   
                                    28 February    29 February                  
2009           2008                         
                                    R`000          R`000                        
Segment sales                                                                   
 Lubricants                         70 436         60 009                       
Metal powders                      21 803         22 640                       
 Other                              4 977          1 808                        
                                    97 216         84 457                       
Segment result                                                                  
Lubricants                         5 960          2 044                        
 Metal powders                      2 048          2 636                        
 Other                              108            51                           
                                    8 116          4 731                        
CONDENSED SUPPLEMENTARY INFORMATION                                             
                                    Year ended     Year ended                   
                                    28 February    29 February                  
                                    2009           2008                         
R`000          R`000                        
Capital expenditure                  2 452          1 396                       
Capital commitments                  -              -                           
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                           
Year ended     Year ended                   
                                    28 February    29 February                  
                                    2009           2008                         
                                    R`000          R`000                        
Ordinary shares                      407             407                        
Share premium                        6 464          6 464                       
Reserves                             24 971         26 423                      
 Retained earnings at beginning of  16 301         14 052                       
year                                                                            
 Foreign currency translation       101            100                          
reserve                                                                         
 Net profit for the year            5 468          3 348                        
Revaluation reserve                9 309          10 022                       
 Realisation of reserve             713            -                            
 Ordinary dividend                  (6 921)        (1 099)                      
Total shareholders` equity           31 842         33 294                      
CONDENSED RECONCILIATION OF HEADLINE EARNINGS                                   
                                    Year ended     Year ended                   
                                    28 February    29 February                  
                                    2009           2008                         
R`000          R`000                        
Net profit attributable to           5 468          3 348                       
shareholders                                                                    
Profit/(loss) on disposal of         8              (50)                        
property, plant and equipment                                                   
Total tax effect of adjustments      -              -                           
Headline earnings                    5 476          3 298                       
Weighted average number of ordinary  8 143          7 410                       
shares in issue (`000)                                                          
Headline earnings per ordinary share 67,2           44,5                        
- basic and diluted (cents)                                                     
BASIS OF PREPARATION                                                            
The audited condensed consolidated Group financial statements for the year ended
28 February 2009 have been prepared in accordance with IAS 34 Interim Financial 
Reporting and in compliance with the Companies Act of South Africa, 1973. The   
audited condensed consolidated Group financial statements are prepared under the
historical cost convention as modified by the revaluation of land and buildings,
investment property, financial assets and financial liabilities held-for-       
trading. These audited condensed consolidated Group financial statements should 
be read in conjunction with the audited annual financial statements for the year
ended 28 February 2009.                                                         
The same accounting policies and methods of computation are followed in the     
Condensed Group Audited Results as compared with the most recent annual         
financial statements.                                                           
COMMENTARY                                                                      
HIGHLIGHTS                                                                      
Group revenue is up by 16% from R84,5 million to R97,3 million.                 
Net profit margins are up from 4% to 6%.                                        
Headline earnings have increased by 66%.                                        
Earnings per share have increased from 45,2 cents to 67,1 cents per share.      
GENERAL REVIEW                                                                  
We are pleased to announce an extraordinary performance for the year under      
review, delivering another record profit before tax of R8,6 million, an increase
of 72% on last year`s R5 million.                                               
Management continues to focus on cost efficiency, product profitability and the 
managing of working capital, which, together with a competent and motivated     
management team, will increase profitability to shareholders.                   
Our Research and Development work has enabled the launching of several products 
into the lubricants market and new innovative aerosol products to be launched in
the new financial year.                                                         
We have spent R2,5 million on capital improvements including the acquisition of 
new production lines and the upgrading of computer equipment.                   
There have been no material related party transactions during the financial     
year.                                                                           
ACQUISITION OF SPANJAARD EU BV                                                  
On 1 March 2008 Spanjaard EU BV ("BV"), a company incorporated in The           
Netherlands, was acquired as a wholly owned subsidiary of Spanjaard Limited at a
purchase price of R1,00.                                                        
Management is of the opinion that the carrying amount approximated the fair     
value of the assets and liabilities of EU BV purchased at acquisition. There    
were no contingent liabilities at that date.                                    
The carrying amount of assets immediately before acquisition was R1 518 000, and
liabilities was R1 955 000 resulting in goodwill of R437 000 being recognised.  
The Board of Directors approved the acquisition of Spanjaard EU BV because the  
company forms an integral part of the operating activities in Europe and holds  
future growth prospects.                                                        
Spanjaard EU BV contributed R3,7 million to revenue and R157 000 to profit      
before tax of the Group.                                                        
SEGMENTAL ANALYSIS                                                              
The lubricants division turnover increased by 18% leading to an increase in EBIT
of 192% to R5,9 million. This was brought about by better management of working 
capital and strict control over costs.                                          
The "other" division includes turnover and EBIT resulting from the acquisition  
of Spanjaard EU BV (Netherlands) on 1 March 2008. Spanjaard EU BV contributed 4%
to Group turnover and 3% to Group net profit after tax.                         
DIVIDEND                                                                        
Interim dividend (No. 16) of 15 cents per ordinary share was declared on 29     
September 2008. The total actual dividends paid during the financial year       
amounted to R1 187 428.                                                         
Final dividend (No. 17) of 70 cents per ordinary share was declared on 27       
February 2009, payable to all shareholders of Spanjaard Limited recorded in the 
books of the company at the close of business on Friday, 15 May 2009. The last  
day to trade cum dividend is Friday, 8 May 2009. Shares will commence trading ex
dividend from Monday, 11 May 2009. The dividend is payable on Monday, 18 May    
2009. Share certificates may not be dematerialised or rematerialised between    
Monday, 11 May 2009 and Friday, 15 May 2009, both days inclusive. Dividend tax  
resulting from the final declaration amounts to R570 000.                       
AUDIT OPINION                                                                   
Mazars Moores Rowland have audited the annual financial statements (and Group   
annual financial statements) for the year ended 28 February 2009 and their      
unqualified audit report, together with their audit report on these condensed   
financial statements, is available for inspection at the company`s registered   
office.                                                                         
By order of the Board                                                           
ML Bond - Company Secretary                                                     
5 May 2009                                                                      
Directors:                                                                      
RJW Spanjaard (Executive Chairman)                                              
CA Gordon-Bennett (Managing Director)                                           
MA Barnes*, GF Cort, BL Montgomery*                                             
CKT Palmer, ARJ Spanjaard*, Dr DP van der Nest*                                 
*Non-executive                                                                  
Registered Office:                                                              
748 - 750 Fifth Street, Wynberg, Sandton, 2090                                  
Transfer Secretaries:                                                           
Computershare Investor Services (Pty) Limited,                                  
70 Marshall Street, Johannesburg, 2001                                          
E-mail: info@spanjaardltd.com                                                   
Website: www.spanjaardltd.com                                                   
Date: 05/05/2009 07:05:02 Supplied by www.sharenet.co.za                     
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